EVRI, also known as Global Cash Access Holdings Inc , has reached a new 52-week high, with its stock price soaring to $13.39. This milestone reflects a significant period of growth for the company, which has seen its stock value increase by 23.61% over the past year. Investors have shown increased confidence in EVRI's market position and growth prospects, contributing to the stock's impressive performance and its peak at this year's high. The 52-week high serves as a testament to the company's resilience and strategic initiatives that have resonated well within the financial services sector.
In other recent news, Everi Holdings (NYSE:EVRI) has seen a series of changes in its stock ratings and analyst estimates. B.Riley maintained a Neutral rating on Everi Holdings, adjusting its EBITDA estimates for 2024 and 2025 to $325.4 million and $346.9 million, respectively, due to anticipated delays in product transitions and the upcoming merger with International Game Technology (NYSE:IGT)'s games division. The firm, however, expects positive EBITDA growth by the fourth quarter of 2024, partly driven by Everi's entry into the Video Lottery Terminal market.
Stifel downgraded Everi Holdings from Buy to Hold, raising the price target to $14.25, in light of the company's acquisition by Apollo Global Management (NYSE:APO). The acquisition is expected to offer an appealing return for most shareholders, with Apollo securing the necessary financing commitments. The merger with International Game Technology's Global Gaming and Play Digital businesses is also underway, aimed at enhancing product offerings and expanding market presence.
Raymond James revised its rating on Everi Holdings from 'Strong Buy' to 'Market Perform' following the announcement of the acquisition by Apollo. The deal values Everi at $14.25 per share, aligning with the implied issuance price for the IGT deal. The firm does not anticipate a higher competing offer due to recent challenges within the gaming business sector.
Everi's first-quarter results showed a decrease in its Games segment but growth in its Fintech cash access services. Adjusted EBITDA fell to $80.3 million from $92.5 million in the same quarter of the previous year. However, Everi anticipates revenue growth and a return to growth in Fintech revenues in the second half of 2024. These are the recent developments for Everi Holdings.
InvestingPro Insights
EVRI's recent achievement of a new 52-week high aligns with several key insights from InvestingPro. The stock's impressive 59.88% price return over the past six months and 46.06% return over the last three months underscore the strong momentum mentioned in the article. This performance is particularly noteworthy given that EVRI is trading at 99.93% of its 52-week high, confirming the stock's robust upward trajectory.
InvestingPro Tips highlight EVRI's impressive gross profit margins, which are reflected in the data showing a gross profit margin of 80.39% for the last twelve months as of Q2 2024. This strong profitability metric suggests that EVRI has maintained efficient operations despite challenging market conditions.
However, investors should note that the RSI suggests the stock may be in overbought territory, which could indicate a potential for a short-term pullback. For a more comprehensive analysis, InvestingPro offers 11 additional tips that could provide valuable insights into EVRI's financial health and future prospects.
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